Trust Registration

Trust Registration is obtained under the Indian Trusts Act, 1882 to avail various tax benefits. Are you planning to get your trust registered online? Let Finango help you out

Get easy updates throughgt whatsApp Icon Whatsapp

How it works

Step 1

Purchase a plan for expert assistance

Step 2

Provide documents to our experts

Step 3

The Certificate will reach your doorstep

Overview

As per Indian Trust Act 1882, the Trust is an organization in which the owner or trustor transfers the power and right of his property to another person named trustee. Such transfer of property is done for the benefit of a third party.  Such an asset or property is transferred by the trust register to the trustee with the declaration of the statement that the trustee should own the asset or property for the recipients of the Trust. Trust Registration in India begins with the drafting of Trust Deed. Trusts are classified into 2 categories: Public Trust: A Public Trust is the one whose beneficiaries include the common public at large. It is the most convenient way of starting a non-governmental organization (NGO). Private Trust: In India, a Private Trust is the one whose beneficiaries include individuals or families.

Benefits

    - Involves lesser documentation

    - Avail tax exemptions u/s 12A & 80G of the Income Tax Act.

    - Enhance Credibility.

Eligibility

Every person who is competent to contract, is of sound mind, and not disqualified by any law. This includes an individual, HUF, AOP, BOI, company and many more.

Validity Period

It’s a one time registration with lifetime validity

Processing Time?

The overall process may take upto 20 days from the date of application depending upon the processing done by the Department.

Documents Required :

  • Proof of Identity-  Self-attested copies of ID Proof of the Trustor & Trustees ( Passport/ Voter’s ID/ Aadhar Card/ Driving License)
  • Address Proof of registered office - Rental Agreement or Ownership Document & NOC from the property owner or Utility Bills i.e. Telephone, electricity, water.
  • Trust Deed & its objective (Finango’s team will help you draft it)
  • Passport Size Photographs of the trustor, trustees, & 2 witnesses present while signing the deed.
  • Note 1: The settlors, as well as the two other witnesses to be physically present along with the identity proofs (original as well as the self-attested photocopy of the same) at the time of Trust Registration in India. However, the physical presence of Trustees is debatable.
  • Note 2: - All the documents have to be self-certified.

Note:- All the documents have to be self-certified

Frequently Asked Questions

  • Do I have to be physically present during the process?

    It’s completely online so; it doesn’t require your physical presence at any stage.

  • In which form an application has to be filed for fresh registration of NGO for registering as per the procedure specified under section 12AB?

    Application has to be filed in Form 10A on income tax portal.

  • Who cannot receive foreign contribution?

    As per the provisions of Section 3(1) of FCRA, 2010, the following are prohibited to receive foreign contribution: candidate for election;  correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper; Public Servant, Judge, Government servant or employee of any corporation or any other body controlled or owned by the Government;  member of any legislature;  a political party or office bearer thereof; Organization of a political nature as may be specified under sub-section (1) of Section 5 by the Central Government. association or company engaged in the production or broadcast of audio news or audiovisual news or current affairs programmes through any electronic mode, or any other electronic form as defined in clause (r) of sub-section (1) of Section 2 of the Information Technology Act, 2000 or any other mode of mass communication; correspondent or columnist, cartoonist, editor, owner of the association or company referred to in the point above Individuals or associations who have been prohibited from receiving foreign contributions.

  • Is trust a separate legal entity?

    No, trust is not a separate legal entity.

  • What are the parties of a trust?

    Settlor, Trustee, Beneficiary are the 3 parties of a trust.

  • Is it compulsory to get a Trust Registration in India?

    Yes, it is compulsory to get a Trust registered in India.

  • What is the governing law for a trust in India?

    The Indian Trusts Act 1887 is the governing law for a trust in India.

  • What is the difference between trustor and trustee?

    The person who creates the trust is a Trustor. In contrast the person who has the responsibility of managing the trust for the beneficiary is known as the trustee.

  • What is the procedure for closure of trust?

    The trust is usually irrevocable in nature.  For reasons like disqualification of trustees, absence of trustees, mismanagement of the trust, the trust can be merged with a trust having similar objective with the permission of the court.

  • In what other ways an NGO can be registered in India?

    NGO can be registered online in the form of a Trust, Society or a Section 8 company.

  • Can the property of the trust sold?

    The Trustees do not have the right to sell the property; however, the trust properties can be sold after obtaining prior permission from the appropriate civil court.

Get easy updates through whatsApp Icon Whatsapp